1099-R Box 2B

Mar 09, 2017 5 Replies
J

I am doing my mother-in-laws taxes using TurboTax and have a question about why box 2b is checked on her 1099-R when she is receiving monthly payments from her retirement plan. She was never in a 401-K or an IRA, but it appears that her retirement payments are being classified as an IRA.



She has Federal With Holding deducted from her monthly payments. If I deselect box 2B there is a difference of over 2,000.00 credited to her, but if the box is selected her Federal refund is about 299.00. What is going on here?



Her retirement payments are coming from years of working for her local County Government. She is 82 years old.


Vote
Twitter Facebook LinkedIn
I

Box 2b doesn't determine IRA vs. retirement plan, box 7 does. Have the checkboxes/codes changed since 2015? If they have, you should check with the pension administrator to find out why. Otherwise, the treatment of the retirement income is unchanged from previous years.

Ira Smilovitz, EA

Vote
Twitter Facebook LinkedIn
J

Ira the code is 7 -- Normal Distribution. Is this the problem?

Vote
Twitter Facebook LinkedIn
I

Seems like an ordinary distribution to me. One where the administrator decided they didn't want to/couldn't determine how much was taxable.

Ira Smilovitz

Vote
Twitter Facebook LinkedIn
B

What determines whether TTax treats the distribution as a pension or an IRA is whether you told TTax the IRA/SEP/Simple part of box 7 was checked or not.

Vote
Twitter Facebook LinkedIn
J

The box is NOT checked on the 1099-R and that's what I did in Turbotax.

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required